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NC flood insurance

NC flooding

Does my North Carolina homeowner insurance cover flooding?

A typical North Carolina homeowners’ policy is written through Farmers, State Farm, Allstate, and Progressive, for instance, excludes flooding as something that will be covered under their homeowner’s policy.

In most cases, the only way to get flood coverage is by purchasing a stand-alone flood insurance policy. However, you should ask your homeowners agent if you can add an endorsement to your homeowner’s policy to cover flooding. Yet, don’t be too surprised if the answer is NO.

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How much does Flood insurance cost NC?

Flood Insurance Rate maps

Do I need flood insurance in North Carolina?

It is important to have flood insurance coverage in North Carolina because our beloved Cowboy State has seen a fair share of flooding, and there is likely more coming.

Flood nerd Broken heartWe believe that most homeowners think about Flood insurance in North Carolina at some point, maybe before buying a home, or during the closing process.  However, many of us only think about it when a big storm is looming, or we have heard on the news that there is flooding forecasted or happening currently too close to our home.

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If your home or business is in a flood zone, that is considered low flood risk area. Sadly, many homeowners decide to forgo purchasing coverage because they believe they are safe from flooding. Some real estate agents and some insurance agents may even say you don’t need it.

I ask you to consider the facts: 20-percent of all flooding events across our nation come in areas that are considered low risk. After our last few major storms (Hurricane Harvey), we saw flooding in these low-risk areas.  In 80 percent of these individuals, they had water in their home or building and didn’t have flood insurance coverage.

In Harris county, nearly 135,000 homes were damaged.  Three-fourths of these properties were considered low to moderate risk.

We hear often that people believe that the government will help, and this is true.  However, there are a few things that must align for you to get government assistance.

1 – The president of the United States must declare the flooding event a state of emergency.  If this doesn’t happen, then there won’t be assistance.

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2 – The average amount of assistance that homeowners get after a flood, when they do not have flood coverage, is $5,000.  The average cost of damage to one’s property after a flood is $38,000+.  That $5K you get from the government?  It comes in the form of a loan and you will need to pay it back.  Are you willing to gamble away your financial future by forgoing flood insurance coverage?

https://www.bloomberg.com/graphics/2017-fema-faulty-flood-maps/

NC flood map

One more note on these low-risk flood zone maps. Many of these maps are over 40-years old. If the area has been developed, then there is likely more concrete, creating a barrier for land that previously, might have absorbed the massive downpour.

Because of all these factors, it is difficult for property owners to know their true risk of flooding. FEMA admits that their flood maps only give an idea for part of the risk. Our recent storms are facts that it can rain anywhere within North Carolina, and you should consider getting flood coverage, so you are not uninsured when you need it most.

FEMA flood zone maps often take years to go into effect after the terrain was studied, this gives the impression that the area is “more up to date” then it really is.

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The average cost for North Carolina flood insurance in these Low-risk areas is $595 per year.

FEMA’s National Flood Insurance Program (NFIP) and all federally backed lenders rely on these North Carolina flood insurance maps to assess risk, set premiums, and determine who is required to purchase flood insurance. Bad information about an areas flood risk can leave property owners under or uninsured.

 

How much is flood insurance in North Carolina?

North Carolina NFIP flood insurance.

There are many options available in North Carolina regarding flood insurance, but they basically fall into two main categories. The Government option also known as the NFIP or FEMA and the Private flood insurance market.

The National Flood Insurance Program (NFIP), also known as FEMA, which is the government option for flood insurance.  The NFIP has enjoyed a 50-state monopoly on the flood insurance market.

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Not “private flood insurance” but NFIP Resellers

If you have Nationwide Flood Insurance, State Farm Flood Insurance, Progressive Flood Insurance, or any of the of the logos below then you are buying the NFIP flood policy that is just being resold through a government program. These companies are private companies, but their flood insurance is not. Here is a list of the 70 companies that resell the NFIP policy.

Progressive Flood Insurance

https://www.fema.gov/wyo_company

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North Carolina private flood insurance market

 

Lloyds of London flood Insurance quote
A Lloyds of London Flood insurance quote might make sense for you

There are alternatives to the NFIP or government insurance.  It  is called Private flood insurance most notably Lloyds of London Flood insurance, however, there are other options available in North Carolina . We shop all the options for your property in your region to ensure you are getting the best premium.  If you are ready to have us do the work for you, please click here.

Our shopping does include the NFIP because sometimes we find that with government subsidies you can get a much better premium.

NC flood insurance quote

Lloyds of London Flood Insurance North Carolina Market

 

North Carolina is fortunate to have many Lloyds of London flood insurance options. Although many Lloyds flood insurance companies will have you assume that there is only one option, nothing could be further from the truth.

Lloyds of London has a rich history and is attributed to have invented the very first modern insurance model. Unlike most of its competition, Lloyds of London is not really a company but rather a corporate body.  This structure works quite well since it has been around for over 330 years. Lloyds operates under multiple financial backers that all pool their capital to spread the risk.

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I have two blog posts that take a deep dive into Lloyds of London and what they mean to North Carolina ’s flood insurance market.  If you are interested, the links are below.

Lloyds of London Flood Insurance

FEMA vs Private flood insurance market

Lloyds also insures the world for flood insurance, meaning they cover flooding events in India, Australia as well as much of Europe.  You see the “game” of insurance is to spread your risk since Lloyds is worldwide.

My joke here is that Lloyds is banking on Gods promise that he won’t flood the entire world again, …..so they won’t have to pay out the whole worlds flood claim.

How much does flood insurance cost in North Carolina?

There are many factors that go into getting the cost of flood insurance for North Carolina. If your home is in what is considered low-to-moderate risk, you can get a heavily subsidized policy though the government.

North Carolina flood insurance low-to Moderate Risk rate and cost.
This is Flood Zone X, which is not lender required flood zone.

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This is usually identified as an X-flood zone.  Then we would suggest the government Preferred Risk Policy (PRP) which is a subsidized policy and has set flood insurance coverage limits (see grid below):

Maximum flood insurance coverages NFIP

Here a link if you want to really dig into this one. Be ready for an eye chart because every option is public record and should be standardized accost whoever writes these policies.

Average cost of flood insurance in North Carolina

The average cost for flood insurance in North Carolina with the maximum set limits in these Low-risk flood zone areas is $405 – $700 per year.

https://www.fema.gov/media-library-data/1523307331106-4cf9726b2eb04c3471a3e9d37a58fa6a/09_prp_508_apr2018.pdf
AE flood Insurance Rates for FEMA
FEMA High-risk Rates

If your property is in higher-risk flood zone, it is usually identified with a Flood Zone AE. Your lender will require you to have flood insurance. The cost of flood insurance in North Carolina depends on many factors that are unique to the structure. We are going to try to give you an idea for the most common homes we see in North Carolina with a slab on grade foundation.

We will look at the North Carolina cost of flood insurance for the NFIP maximum of $250,000 for the (building only) with NO CONTENTS and our recommended deductible of $5,000.

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We will be rating this example on the NFIP, as well as on a few of our private flood insurance policies, specifically Lloyds flood insurance options in North Carolina.

Cost of Flood Insurance in NORTH CAROLINA in high-risk flood zone AE

Our example is in Dare, NC, but the premiums will be the same if in Currituck, Carteret, Nags Head, New Hanover, Carolina Beach, and many other North Carolina flood ones.

Flood Insurance companies in NC

In our example, the Base Flood Elevation (BFE 8) and is a home that is built before 1973

Base Flood elevation Oregon

NFIP option in North Carolina Flood Zone AE

 

NFIP – Coverage of $250,000 building coverage (no Contents coverage) and $5,000 deductible

NFIP Annual premium in High-Risk flood zone is $ 4,835.00

 

This option is what we see if the property has had a flood loss before, and either doesn’t have an Elevation Certificate applied or the Elevation certificate showing that the lowest floor is 4 feet under the BFE for the area. You can use 10% of your coverage to cover other structures on your property. NC flood insurance increase are expected on the Government policy.

 

North Carolina Private flood insurance – Lloyds of London Flood Insurance (option 1)

Coverage of $250,000 building coverage (no Contents coverage) and $5,000 deductible

Lloyds of London (option 1) Annual premium in High-Risk flood zone is $ 756.40

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This option is great, and we are very happy when we can get this option. They can be a bit choosey about what risk they will accept and will not take anything that has had a flood loss. They do offer coverage for basements, about $2,000 for loss of use, $2,000 for other structures, but they can’t increase this coverage. They do not require an Elevation Certificate to rate.

Better Flood Insurance is the best shopper for you.
Let us to the flood insurance shopping for you – Save time.

North Carolina Private flood insurance – Lloyds of London Flood Insurance (option 2)

Coverage of $250,000 building coverage (no Contents coverage) and $5,000 deductible

Lloyds of London (option 2)  Annual premium in High-Risk flood zone is $ 806.81

This option is great, and we are very happy when we can get this option for our clients as well. They seem to be writing almost all risks; however, they do not write any property that is in a designated floodway or has the depth of -4 under the BFE.  In our example, with our BFE being 5368, if the lowest floor is 5364, then they will not accept this risk.  They will not take anything that has had a flood loss. They do offer limited coverage for basements and do not require an Elevation Certificate to rate, and as a percentage of coverage for loss of use. If you want coverage for other structures, then that will need to be added.

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Private Flood insurance option (option 3) NOT Lloyds

Coverage of $250,000 building coverage (no Contents coverage) and $5,000 deductible

Private flood insurance (option 3) Not Lloyds,

Annual premium in High-Risk flood zone is $ 2,815.56

 

This option will take properties that have had one flood loss as long as it has been more than five years, and the payout was under $100,000 on the claim. Their coverage matches the NFIP.  They will write practically all risks, don’t need an elevation certificate to rate, and are a bit lower in premium than the NFIP.

Private Flood insurance –  Lloyds of London (option 4)

This option must be written on the Replacement Cost Value (RCV) of the building, otherwise there is a co-insurance penalty that kicks in. So, $250,000 might be a bit low in California, but to keep this going, let’s just use that for this option

Coverage of $250,000 (RCV) building coverage, No Contents and $5,000 deductible

Annual premium in High-Risk flood zone is $ 721.60(great price).

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This options rating system is all over the board.  Sometimes we get a crazy great price, but other times the premium is way higher than the NFIP will consider taking a property that has had one flood loss before as long as it has been more than ten years and the payout was under $50,000 on the claim. Their preferred coverage is at replacement cost, which is a bit different from some of our other Lloyd’s flood options.  We usually reserve this one if the property doesn’t fit into any of our options above. We can adjust coverages to control premium. As mentioned before, this underwriters’ rates are all over the board.  It is worth shopping through to make sure we are getting you the best premium we can. They don’t need an elevation certificate to rate.

Flood Nerds are the Best

Private Flood insurance –  Lloyds of London (option 5)

Coverage of $250,000 (RCV) building coverage, No Contents and $5,000 deductible.

Annual premium in High-Risk flood zone is $ 846.96

This option came out of the company that used to run the NFIP program, so the coverage almost exactly matches the NFIP coverage with two differences. They offer living expenses which will cover your cost, when you are displaced from your home during repairs (most Lloyds flood policies offer this).  They also offer swimming pool clean out, which is kind of unique so if you have a pool ask for this coverage.

Private Flood insurance –  Lloyds of London (option 6)

Coverage of $250,000 (RCV) building coverage. No Contents and $5,000 deductible.

Annual premium in High-Risk flood zone is $ 904.25

Yes Please Shop my Flood Insurance

This options rating system is also all over the board. Sometimes we get a crazy low price; other times the premium is way higher than the NFIP. They will consider taking a property that has had one flood loss before as long as it has been more than ten years and the payout was under $25,000 on the claim. They have been rumored to give a low price the first year and then non renew following years or sometimes they jack the price way up so we will watch them. They have a slick system, and their underwriting is managed by a 3rd party, which also seems to be a glitch sometimes.

There are more options coming online every day, and we are working to be looking into every viable option.

Currently, North Carolina has 134,987 NFIP policies in force to date with the total cost of $109,932,602.  That would make the average flood rate for North Carolina $814. Of course, some will pay more, and some will pay less.

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Flood Insurance NC

Let flood nerds shop

Hello, North Carolina!  Thanks for visiting our page for all your flood insurance needs.

Let’s start off with Beaufort County, North Carolina, where the average flood rate is $755.  The premiums in Beaufort total $1,698,459 with 2,249 active flood policies.

Next up is a group of areas that include Belhaven, Carolina Shores, Caswell Beach, and Leland, North Carolina where the flood policies number 2,175.  The premiums in these areas add up to $1,347,473 which allows the average flood rate to be $620.

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Washington, North Carolina has $1,171,459 in flood premiums.  The average flood rate is $974 which includes 1,203 in active flood policies.

The average flood rate rises to $1,047 in Bald Head Island, North Carolina.  The premiums total $1,236,297 with 1,181 flood policies in effect.

Flood Insurance in Brunswick County

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3,704 flood policies are active in Brunswick, North Carolina.  The average flood rate in Brunswick is $508 which includes $1,880,248 in flood premiums.

The average flood rate jumps to $2,075 in Holden Beach, North Carolina.  Holden Beach has 1,822 active flood policies with $3,781,080 in premium.  Give us a call Holden Beach to check flood rates!

In Oak Island, North Carolina, the premiums add up to $4,535,181 with 3,311 flood policies in effect.  Oak Island has an average flood rate of $1,370.

When we look at Ocean Isle Beach, North Carolina, we find that the average flood rate rises to $1,629.  The premiums in Ocean Isle Beach total $3,863,549 with 2,372 flood policies active.

Flood insurance Asheville NC

Let’s check out a group of areas that include Southport, Asheville, and Buncombe, North Carolina, where the flood policies number 1,339 with $1,722,983 in total flood premium.  The average flood rate for these areas is $1,287.

There are 1,045 flood policies active in St. James, North Carolina.  The average flood rate in St. James is $484 which includes $505, 654 in written premium.

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Next, let’s look at Sunset Beach, North Carolina, where the average flood rate is $687.  The flood policies number 1,559 with $1,071,810 in flood premiums.

Our next two areas include Camden and Beaufort, North Carolina, where the flood policies add up to 1,611 with $1,202,189 in total premiums.  The average flood rate for Camden and Beaufort is $746.

$1,046,799 is the premium total in Elizabeth City, North Carolina.  The active flood policies number 1,476 which allows the average flood rate to be $709.

Next up is Atlantic Beach, North Carolina, where the average flood rate is $747.  The flood policies total 2,927 with $2,185,838 in flood premiums.

The average flood rate drops a little to $724 in Carteret, North Carolina.  Carteret has $2,717,013 in written premium with 3,753 flood policies in effect.

A few areas that include Cedar Point and Cary, North Carolina, have 1,118 flood policies active with $653,558 in total premium.  The average flood rate for these areas is $585.

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When we look at Emerald Isle, North Carolina, we find that the average flood rate rises to $943.  The premiums in Emerald Isle total $2,541,006 with 2,696 active flood policies.

Morehead City, North Carolina has 1,537 flood policies in effect.  The premiums in Morehead City total $1,033,896 which allows the average flood rate to be $673.

In Pine Knoll Shores, North Carolina, the average flood rate drops a bit to $652.  The flood policies here number 1,325 with $864,002 in written premium.

Again, the average flood rate drops to $554 in Craven, North Carolina.  Craven has $1,253,265 in flood premiums with 2,264 active flood policies.

Let’s check out New Bern, North Carolina, where the flood policies number 1,353 with $946,467 in total premium.  The average flood rate in New Bern is $700.

Let’s look at a couple of areas that include River Bend and Cumberland, North Carolina.  These areas have premiums that total $682,964.  The flood policies add up to 1,193 which allows the average flood rate to be $572.

1,291 is the total number of active flood policies in Fayetteville, North Carolina.  The average flood rate here is $584 which includes $753,964 in written premium.

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There are 5,221 flood policies active in Currituck, North Carolina.  The premiums here total $4,838,033 which allows the average flood rate to be $927.

Hello Dare, North Carolina!  You all have the highest number of active flood policies in the state at 8,635 with $5,737,573 in written premium.  The average flood rate in Dare is $664.

The average flood rate rises to $925 in Duck, North Carolina.  The premiums in Duck total $1,049,725 with 1,135 flood policies in effect.

In Kill Devil Hills, North Carolina, the active flood policies number 4,295 with $2,796410 in total premium.  The average flood rate here is $651.

Flood Nerds

The average flood rate jumps to $954 in Kitty Hawk, North Carolina.  Kitty Hawk has $1,471,687 in written premium with 1,542 flood policies active.

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Manteo, North Carolina has 997 active flood policies with $666,822 in flood premium.  The average flood rate in Manteo is $669.

$924 is the average flood rate in Nags Head, North Carolina.  Nags Head has 3,504 flood policies in effect with $3,237,669 in premium.

There are 1,027 flood policies active in Southern Shores, North Carolina.  The premiums here total $921,289 which allows the average flood rate to be $897.

Let’s check out a group of areas that include Duplin, Winston-Salem, and Greensboro, North Carolina.  These areas have premiums that total $1,192,168 and active flood policies that total 1,497.  The average flood rate for these areas is $796.

Our next group includes Chapel Hill, Rocky Mount, Harnett, Waynesville, and Johnston, North Carolina where the average flood rate is $859.  The flood policies in effect total 2,633 with $2,262,567 in total premium.

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Flood Insurance Durham NC

Durham, North Carolina has an average flood rate of $860.  The premiums here add up to $1,058,109 with 1,230 in active flood policies.

The average flood rate rises to $958 in Hyde, North Carolina.  The premiums in Hyde total $1,194,010 with 1,246 flood policies in effect.

Flood Insurance Jacksonville NC

Let’s check out Kinston, Jacksonville, and Oriental, North Carolina where the flood premiums add up to $1,232,065.  The flood policies total 1,761 which allows the average flood rate to be $700.

Flood Insurance Charlotte NC

When we look at Charlotte, North Carolina, we find 2,949 flood policies active.  The premiums add up to $1,822,590 which allows the average flood rate to be $618.

Now, let’s look at Carolina Beach, North Carolina, where the premiums total $3,125,196.  The average flood rate in Carolina Beach is $887 which includes 3,523 active flood policies.

5,025 flood policies are active in New Hanover, North Carolina.  The premiums total $3,186,566 which allows the average flood rate to be $634.

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The average flood rate rises just a bit to $649 in Wilmington, North Carolina.  The flood policies total 2,936 with $1,904,195 in written premium.

Again, the average flood rate rises to $1,070 when we look at Wrightsville Beach, North Carolina.  Wrightsville Beach has $2,853,648 in flood premiums with 2,666 flood policies in effect.

Once more, the average flood rate rises to $1,344 in North Topsail Beach, North Carolina.  The active flood policies total 1,268 with $1,704,186 in total written premium.

When we check out Onslow, North Carolina, we find 1,931 flood policies active.  The average flood rate in Onslow is $519 which includes $1,002,153 in total premium.

$1,426 is the average flood rate in Surf City, North Carolina.  The premiums in Surf City total $3,056,968 with 2,143 active flood policies.  Give us a call Surf City!

In Pamlico, North Carolina, we see 1,114 flood policies active with $665,763 in written premium. The average flood rate in Pamlico is $598.

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Next up is Pasquotank, North Carolina, where the average flood rate is $573.  The premiums total $714,990 with 1,247 flood policies in effect.

The average flood rate rises to $614 in Pender, North Carolina.  Pender has 1,764 active flood policies with $1,083,567 in total premium.

Topsail Beach, North Carolina’s average flood rate is $1,476.  This includes $1,601,002 in flood premiums with 1,085 flood policies active.  Give us a call Topsail Beach!  We’ll check your rates!

Flood Nerds shop all options
FEMA FLood Insurance Rate Maps

Let’s look at a group of areas that include Perquimans, Pitt, and Tyrrell, North Carolina where the premiums add up to $867,559 with 1,505 flood policies in effect.  The average flood rate for these areas is $576.

In Greenville, North Carolina, the flood policies number 1,201.  The premiums add up to $817,891 which allows the average flood rate to be $681.

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Another group that includes Lumberton and Robeson, North Carolina has an average flood rate of $794.  The premiums in these areas add up to $1,020,492 with 1,286 flood policies active.

Flood Insurance Raleigh NC

1,977 is the flood policy totals in Raleigh, North Carolina.  Raleigh has $1,929,725 in flood premiums which allows the average flood rate to be $976.

Let’s check out some more areas – Wake, Wayne, and Wilson, North Carolina.  These areas have an average flood rate of $672.  The flood premiums add up to $897,791 with 1,336 active flood policies.

Our last group includes Boone, Watauga, and Goldsboro, North Carolina where the flood policies number 1,322.  The average flood rate for these areas is $932 which includes $1,232,243 in flood premium.

Thanks for checking out all the flood information on North Carolina!!

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How to save money on Flood Insurance in North Carolina VE flood zones

All homes that are ocean facing are custom built so with this special consideration our Lloyds of London VE flood zone and other Private Flood Insurance options for oceanfront properties take this into consideration with variable coverage options as well as significant savings below is a case study for a property we were shopping just last week.

Our example was in the Wilmington, NC area and is in a VE flood zone map.

For the coverage of $250,000 with no contents and a $5,000 deductible the NFIP annual cost for flood insurance in a VE flood zone is $ 19,237.00. Ouch!

Since we are who we are and experts in Flood Insurance we will look at every property everyway possible to ensure that we are getting the best premium for our clients and WE often Do (smile wink)

We tried this same property on our Private flood options and were able to get the premium to under $5,150 and we have in some cases with similar properties gotten the annual premium to $600 this was a feather in our cap and made our clients very happy. Again all properties are unique in these VE flood zones but if we can find a private flood policy for you we guarantee it will be better then the NFIP option.

Let us help you save money today.

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NFIP vs Private Flood Insurance

NC flood Insurance Cost Calculator

For decades, the NFIP has over-charged 50 percent of its policyholders and under-charged the other 50 percent, while it has racked up $42 billion in taxpayer-funded losses, equating to more than half of every claim paid by the NFIP since 1978.

About 30 percent of NFIP claims payments go to the same 3 percent of insured “repetitive loss” structures year after year. When you do the math, this means that the other 97 percent of their flood-exposed constituents could have paid in less and still netted larger claims payouts if they had better access to private flood insurance. In fact, a recent white paper by Milliman found that 90 percent of homes in Sandy-struck North Carolina and North Carolina would see reduced flood insurance rates through private insurers.




References

the following documents contain additional hydrologic data, flood photos, historic flood descriptions, floodplain delineations and other pertinent information, and should be considered supplemental to this flood warning plan:

https://bsa.nfipstat.fema.gov/reports/1011.htm#COT
https://www.fema.gov/average-claim-payments-date-loss
https://www.fema.gov/national-flood-insurance-program
https://www.fema.gov/media-library-data/1486576697135-ac6348fb2a3d98ceba33cf3f38422dbc/Claim_Loss_Counts_Sept2016.pdf
https://www.fema.gov/media-library-data/1458666638945-d752cb148ef1348b4b1c22acec66a0bd/Claim_loss_count2015.pdf
https://www.fema.gov/media-library-data/1393877884619-3091f75bf9d46a26f5beb7d423c34529/Total_Claim_Count_fy2013.pdf
https://www.weather.gov/safety/flood-states-nc
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